TCEI Observes Gas Flare at Kowalik-1H in Sugarloaf Block B

Sugarloaf Prospect
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Empyrean Energy Plc has provided the following update on operations at the Kowalik-1H well on Block B within the Sugarloaf AMI, which is part of the Sugarkane Gas and Condensate Field.

Kowalik-1H Well

Empyrean has been advised by the Operator of the Sugarloaf AMI, Texas Crude Energy Inc ("TCEI"), that as at 6am Texas time on September 9, 2008 the well was drilling ahead in near horizontal hole within the target upper part of the Austin Chalk at a measured depth of 13.385 feet. Approximately 1,400 feet of horizontal hole has now been drilled with total gas recorded in the range 300 to 700 units -- up from a background of approximately 200 units. A small intermittent gas flare has been observed over the latest approximately 100 feet of drilling.

The horizontal section to be drilled is planned to be approximately 6,000 feet in length and is targeting the upper pay interval that has been reported as successfully producing gas and condensate in Block A (TCEI JV Block A-1 and A-3 wells).

Empyrean has an 18% working interest in this well.


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